regional formation and development studies - Klaipėdos universitetas

ISSN 2029-9370. Regional Formation and Development Studies, No. 2 (7)
in GDP) is weak and the lack of continuity and no regulation of banks (Bank of Lithuania, the role of a weak,
vague concept of banking regulation), the bank workers’ skills shortage (viable loans issued to businesses,
the orientation the short-term profits) fraud (embezzlement of deposits, interest-free loans to owners of bankrelated
entities). “Russia’s financial crisis” (1998) Causes of Lithuania can be regarded as originating in
Russia’s currency and financial crisis to accompany the Russian debt crisis. Effect of this crisis, the Russian
ruble fell, the income of the citizens fell, Russia’s GDP declined, the state refused to redeem their securities.
This had a negative impact on the surrounding countries, especially those who had close trade relations with
Russia. Russia devalued the ruble decreased competitiveness of Lithuanian goods in Russia. Granted, that a
substantial economic downturn and financial turmoil in Russia and Lithuania hit the economy, which with
Russia (and other CIS countries) were closely related trading links. It should be emphasized that the Russian
financial crisis affected Lithuania’s financial system, banking and financial crisis did not result in Lithuania.
The financial sector has suffered a loss. Lithuanian economy in 2002–2007 has grown very rapidly, but this
growth cannot be sustained because it was destined to rise in private sector debt and property bubble in the
carpet. Therefore, the economy has become heavily dependent on government loans. In 2008, Lithuania’s
economic growth began to slow in 2008 and dropped sharply in the fourth quarter (a total of GDP figures
declined for 6 consecutive quarters). So the year 2008 can be regarded as a complex system of Lithuania’s
financial crisis. Lithuania’s economy had not only the global financial crisis in the world and in Lithuania
but in the event of financial crisis. Real estate bubble, a large expansion of credit, bank credit depends on the
country’s economic growth – all of which resulted in the formation of global financial crisis. The emphasis
on sustainable economic development in Lithuania and assumptions in order to research the formation of regional
policy in Lithuania took place in the financial crisis are grouped as follows: the banking crisis, which
took place in 1995, placed inside the country’s financial crisis type, the Russian financial crisis, which took
place in 1998 that Currency crisis that affected the surrounding region; Global financial crisis, which took
place in 2008 – a complex financial crisis at the same time as the financial crisis originated in Lithuania and
the world (is the global financial crisis had a negative impact on the economy of Lithuania).
KEY WORDS: financial crisis, financial crisis classification, types of financial crises.
JEL codes: G000; G010.
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